BETHESDA, MD—Taking advantage of the still favorable capitalmarket conditions, last week Pebblebrook HotelTrust tapped the public markets with a common shareoffering of 3 million shares – and offering thatwas then expanded to include 450,000 additional shares issued whenthe underwriter exercised its option to purchase additional shares.The REIT is netting $131.4 million from theoffering, minus expenses.

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Pebblebrook will use the net proceeds to repay the approximately$91 million outstanding on its senior unsecured revolving creditfacility. The remainder will be used for general corporatepurposes, which may include acquisitions or investments.

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Raymond James was the sole book-running manager for theoffering.

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The REIT has made a number of acquisitions in recent months. InMay it acquired the 160-room Prescott Hotel in SanFrancisco's Union Square for $49 million—the company's sixthacquisition in the city. The Prescott was funded with availablecash and its credit facility.

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In July it acquired The Nines, a 331-roomluxury hotel in downtown Portland for $127 million—the REIT's thirdacquisition in downtown Portland. That acquisition as well wasfunded with its credit facility and the assumption of $50.7 millionof existing debt secured by the property.

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